10-Q: abrdn Platinum ETF Trust Reports NAV Increase in Q2 2024 Amid Platinum Price Gains

abrdn Platinum ETF Trust saw its net asset value (NAV) increase in the second quarter of 2024, driven by a rise in platinum prices and an increase in outstanding shares.

Summary

• abrdn Platinum ETF Trust's NAV increased by 11.91% during the second quarter of 2024, reaching $1,029.6 million.
• This growth was primarily fueled by a 11.58% increase in the price of platinum, which rose to $1,012 per ounce.
• The number of outstanding shares also increased from 11,050,000 to 11,100,000 due to the creation and redemption of shares.
• The NAV per share increased by 11.41% to $92.76.
• For the six months ended June 30, 2024, the Trust's NAV increased by 3.22% to $1,029.6 million.
• The NAV per share increased 0.90% from $91.93 at December 31, 2023 to $92.76 at June 30, 2024.
• The Sponsor's Fee for the quarter was $1,534,625, and for the six months was $2,912,090, representing 0.60% of the Trust's ANAV on an annualized basis.
• The Trust's investment objective is to reflect the performance of the price of physical platinum, less the Trust's expenses.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the increase in NAV and platinum prices, but tempered by the Sponsor's Fee and concentration risk.

Positives

• The Trust's NAV increased significantly due to rising platinum prices.
• An increase in outstanding shares indicates investor interest.
• The Trust's investment objective is clearly defined and consistently pursued.
• The Trust maintains effective disclosure controls and procedures.
• The Trust is classified as a grantor trust for U.S. federal income tax purposes, meaning it is not subject to U.S. federal income tax.

Negatives

• The Sponsor's Fee reduces the overall return for investors.
• The Trust's performance is heavily reliant on the price of platinum, creating a concentration of risk.
• Net investment loss for the three months ended June 30, 2024 was ($1,535,000).
• Net investment loss for the six months ended June 30, 2024 was ($2,912,000).

Risks

• The Trust's performance is highly dependent on the price of platinum, which is subject to various market factors.
• Global platinum supply and demand, investor expectations, currency exchange rates, and political events can all impact platinum prices.
• There is no guarantee that platinum will maintain its long-term value.
• The Trust is exposed to concentration risk due to its sole business activity being the investment in platinum.

Future Outlook

The discussion and analysis may contain forward-looking statements relating to the Trust's financial condition, operations, future performance, and business, based on certain assumptions and analyses made by the Sponsor.

Management Comments

• The Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in platinum.
• The Chief Executive Officer and the Chief Financial Officer of the Sponsor concluded that, as of June 30, 2024, the Trusts disclosure controls and procedures were effective.

Industry Context

This announcement reflects the performance of a specific platinum-backed ETF, which is influenced by the broader trends in the platinum market, including supply and demand dynamics, industrial usage, and investment sentiment. Competitors would include other platinum ETFs and physical platinum investment options.

Comparison to Industry Standards

• Comparable platinum ETFs include those offered by other asset managers, such as GraniteShares and Sprott.
• The expense ratio of 0.60% is a key factor for investors to compare against other similar ETFs.
• The Trust's performance is directly tied to the LBMA Platinum Price PM, a global benchmark for platinum pricing.
• The custody arrangements with ICBC Standard Bank Plc are similar to those used by other precious metals ETFs, ensuring the security and integrity of the underlying assets.

Related Party Transactions

• The Sponsor and the Trustee are considered to be related parties to the Trust.
• The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants and purchase or sell Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

Stakeholder Impact

• Shareholders benefit from the increase in NAV and NAV per share.
• Authorized Participants are able to create and redeem shares in exchange for platinum.
• The Sponsor receives fees for managing the Trust.
• The Trustee and Custodian provide services to the Trust and receive compensation.

Key Dates

Keywords

platinum, ETF, abrdn, NAV, shares, investment, trust, sponsor, redemption, creation